Morgan Stanley to get £7.8m if bid for Canary Wharf cancelled

Canary Wharf Group PLC has agreed to pay 7.8 mln stg to Morgan Stanley if the investment bank decides not to proceed with an agreed takeover of the London Docklands property company or if investors vote against it, the Financial Times reported without citing sources.

The paper said the inducement fee is separate from a 15.6 mln stg ´break fee´, or 1 pct of the transaction value, that Canary Wharf would pay Morgan Stanley if its directors withdrew their recommendation or if a third party trumped Morgan Stanley´s offer.

Morgan Stanley would receive 4 mln stg if Canary Wharf sells two buildings for 1.1 bln stg but the acquisition of the company fails.

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